Ebay madness re: current gold price

pec2007 · September 20, 2007 6:27AM

I live in the UK and recently I`ve noticed coins selling for far less than the spot price of gold which seems ludicrous.

for example.

a uk sovereign contains .235 oz gold so three of these is .705 oz gold

at the current spot of $734.7 the gold is three sovereigns is worth $517.96

using the exchange rate on xe.com for usd > gbp the $517.96 is £257.82

so purely going on gold value 3 sovereigns are worth £257.82

Why oh why can they be readily picked up for under £220.

Can anybody explain this?

Russ · September 20, 2007 6:30AM

It's because nobody knows what the hell a "£" is.

Russ, NCNE

GrumpyEd · September 20, 2007 6:36AM

You also need to look at details of the listing.
It might be someone that has low or bad feedback or doesn't accept certain types of payment or looks like a crook to bidders.

I don't know what listings you're talking about but I've seen it with other listings, an unsafe looking listing doesn't get top dollar.

pec2007 · September 20, 2007 6:42AM

We`re talking over 1200 positive feedbacks powerseller.

Just strikes me as being plain daft that they go for a 15% discount over spot price.

I picked up a 2006 PR70UC FS 1 oz gold buffallo the other day in the UK for under $800 the other day which seemed like a bargain.

aficionado · September 20, 2007 6:46AM

Maybe people don't believe gold will go higher. Maybe they think it will come back down and don't want to over pay for a 1 month pop and see gold at $650 by the end of the year.

GAT · September 20, 2007 7:30AM

Welcome to the board pec2007. I love that old, "Blessed plot of land" England. Spent some of the best years of my life stationed there with the U.S. Air Force.

Now to answer your question. Foreign gold, which sometimes you will see referred to as, "Dark side" coins has always sold at or below melt. If you look at the results on eBay you will find that's also true for a lot of U.S. modern gold.

OPA · September 20, 2007 7:37AM

<< <i>Welcome to the board pec2007. I love that old, "Blessed plot of land" England. Spent some of the best years of my life stationed there with the U.S. Air Force.

Now to answer your question. Foreign gold, which sometimes you will see referred to as, "Dark side" coins has always sold at or below melt. If you look at the results on eBay you will find that's also true for a lot of U.S. modern gold. >>

I for one, consider it "bullion" regardless if it is proof or unc. & will pay accordingly...

TwoSides2aCoin · September 20, 2007 7:40AM

<< <i>Why oh why can they be readily picked up for under £220.
Can anybody explain this? >>

Yes, people are funny.
Just keep reading the boards.

I'm Joe, welcome aboard.

coynclecter · September 20, 2007 7:40AM

Here's a few ideas

the sovereign is 22 carat so thats only 92% gold.

gold is often purchased at spot from dealers and sold to them for less than spot. If they took them to a dealer they would not get spot.

If the coins are worn then they could be a 1-2% reduction in value.

Most buyers would consider the cost of shipping when they determine thier highest bid.

RedTiger · September 20, 2007 7:54AM

Both the gold and currency markets are moving. By the time the coins are delivered what looked like a sure profit might be a loss.

Some links to actual completed auctions might reveal more information that may have been a factor in low prices realized, such as high shipping charges, or confusing terms, or whatever. If the auctions are more than a few days old, the gold price and exchange rates were different then.